It will not let me select Form 1116 and is making me use Sch A box with this validation error. It results in a $200 smaller refund, which is not ideal obviously. How do I fix this?
This is a software error and here is the workaround. If you are using the desktop version, use “A”; if using the on-line version, use “B”
(A)
Bring up Form 1040 Wks. and make sure the credit is posted on line 48. If it is then bring up the
1099-DIV Worksheet. In Box 7, double click on the f1116 icon.
Another box will appear. You will see the phrase “Form 1116 (COPY 1)”. Click on that and it will be highlighted. Then click on the “LINK” button.
That box will disappear and you will see the phrase “COPY 1” inside the f1116 icon.
Then recheck Form 1040 Wks. and make sure the credit is still posted on line 48. If so, the error is cleared, no f1116 will be generated and you are done.
(B)
It is assumed you are using the exemption and the credit is posted on line 48 of the 1040 Wks. Go to the Foreign Tax Credit interview. We will be going into the interview just far enough so TT will Link to COPY 1 of a f1116 although no f1116 will actually be generated. Here are the headers and the responses.
1. Foreign Tax Credit
Continue
2. Tell Us About Your Foreign Taxes
Check the “None of these apply.”
Make sure the other 2 are blank.
Continue
3. Foreign Taxes
Continue
4. Do You Want the Deduction or the Credit?
Take a Credit.
5. Reporting Foreign Taxes Paid
Continue
6. Where Did You Receive Dividend Income From?
If already selected, Continue, otherwise select any one. It doesn’t matter as it is not needed.
7. Income From Foreign Countries
“Report Income.”
8. Report Foreign Tax Paid to XXXX.
Check under “Select”.
Continue.
9. Foreign Source Income
If there is an entry, ignore it otherwise type in any arbitrary amount. It is only a filler and not needed.
Continue.
10. Reporting Foreign Taxes Paid.
At this point, TT should have inserted the Link and cleared the error without generating a f1116. We want to vacate the interview now, so I suggest selecting “Smart Check” to see if the error is cleared. If so, verify the credit is still on line 48 of the 1040 Wks. and you are done.
i followed the same instruction. but i am still getting the same error. the line 48 is correct, but it keeps tell ing me to update the 1099-div on the line 7 field. when will this get fixed.
i have tried this multiple times as well and the error keeps coming back
since my foreign dividend is less than 300. so i don't need to submit the 1116 form. I just select the "A" on the 7 C section, and that help get away the error.
Make sure you are saying "None of these apply" (even if they do) on step two. I wasn't and it took me awhile to figure out why it wasn't working.
well, that step two is only for online version, which does not apply for desktop version.
I have the Premier desktop version of TurboTax. I'm was having a problem entering foreign stock dividends with foreign taxes. I entered the dividends and taxes when I entered information from the 1099-DIV forms. Later, in the Deductions and Credits section, I chose to take a tax credit, and proceeded to the Foreign Tax Credit section. At this point, the form 1116 looked good. Then I ran the smart check program, and it asked me to fill in "COPY 1" on a form and also to check the Column A box. Then, when I checked Form 1116 in the form view, the divided in Column A had doubled in value and was incorrect. The foreign tax credit was also much higher. So, I manually changed the dividend in Part I and the tax in Part II and that corrected the problem.
I am having the same problem. I have tried all of the suggestions here. I am still getting the error. Please fix this bug!
Ok I just ran through these step and it looks like it worked